Most aspiring real estate investors struggle with fear.
But the ones who become successful GPs work through their fears with practice.
Mai Duong is Harvard-educated CPA with 25 years of experience in corporate finance and accounting.
She is also on the Executive Team at Sunbelt Equity Group, where she has amassed a portfolio of 192 multifamily units with more closings to come.
On this episode of Financial Freedom with Real Estate Investing, Mai joins me to explain what she learned as an LP that helped her become a successful active investor.
Mai describes how she dealt with fears around talking to brokers and raising capital with preparation, challenging us to practice underwriting lots of deals and asking questions in a ‘throwaway market.’
Listen in to understand how Mai’s team is finding deals right now and learn how to adjust your underwriting to overcome your fears and invest with confidence!
Key Takeaways
How Mai got interested in multifamily as an alternative investment
- Frustrated by fluctuation of 401(k)
- Look into real estate as way to generate wealth
- Must be something better than SFH rentals
What the passive investors need to know about underwriting deals
- Understand ARR, IRR and multiplier
- How assumptions affect returns
How Mai’s role as an LP was a stepping stone to becoming a GP
- Explore how others build projects
- Learn underwriting and broker communication
The many roles Mai has taken on as the GP in a multifamily deal
- Source deal, raising capital, asset management, etc.
- Partner with high-net-worth friend to sign off on loan
Mai’s advice on getting brokers to take you seriously early on
- Prepare list of questions and do research
- Practice in ‘throwaway market’
How Mai thinks about raising capital for a multifamily deal
- You’re doing THEM favor (not begging for money)
- Educate investor with data
How to convince experienced investors to partner with you
- Identify how you can contribute to team
- What skills do you have that GPs need?
How Mai’s team is getting deals done right now
- Always people who must sell for whatever reason
- Motivated sellers (structure- or market-driven sales)
How Mai has adjusted her underwriting in the last 5 years
- Interest rates
- Insurance quotes
- Property tax
- Operating reserves
- Detailed renovation budget
- Negative rent growth projections
The biggest challenge Mai is facing as a GP right now
- Stock market investors’ 401(k)s in bad shape
- Hard to inspire confidence in fearful investors
Related Articles
How to Buy an Apartment Complex
What are the Basics of Underwriting
Connect with Mai Duong
Email [email protected]
Connect with Michael Blank
Apartment Investor Network Facebook Group
Email [email protected]
Resources
Purchase Michael’s Syndicated Deal Analyzer
Join the Nighthawk Equity Investor Club
Explore Michael’s Mentoring Program
Get Michael’s Deal Maker Certification
Access Michael’s Free Resources in the Freedom Vault
Review the Podcast on Apple Podcasts
Financial Freedom with Real Estate Investing by Michael Blank
